My state, now country, is Texas.
It had a Governor, a legislature, a Secretary of State, etc., and had issued currency (as had many of the colonies, as well as coinage), much like any other nation.
The federation, first under the Articles of Confederation, and later, under the Constitution granted only limited powers to the Federal Government for the mutual benefit and common defense of those united States, and reserved all powers not so granted to the States and to the People, respectively.
Primary allegiance, thus, was to the States, not the Federal Government, which was not yet a National Government.
That was the reason Robert E. Lee chose to resign his Federal Army commission and side with his native Virginia rather than accept a posting to defend the Federal District (Army of the Potomac).
That choice was deemed unforgivable by the Federals, who seized his family lands and made them a cemetery (Now known as Arlington Cemetery), to ensure he would never again live there.source
My ancestors and relatives fought under the Southern Cross with the First Virginia, and at sea as well. The flag is part of our family history in that regard.
I am not about to abandon it to assuage the trumped up angst of those who have no knowledge of their own history who would have me abandon mine.